Oil Price Buz Feeling the Heat Record saudi OutPut
Oil Price Buz The commodity is trading at $41.50 per barrel at 09:40 GMT this morning, 0.05% lower from the New York close. Crude oil hit a high of $41.66 per barrel and a low of $41.10 per barrel during the session. In the New York session yesterday, crude oil fell 2.79% to close at $41.52 per barrel, after the EIA reported that US crude oil inventories rose 1.1mn bls last week. Furthermore, the OPEC indicated that Saudi Arabia’s oil production reached a record high of 10.7mn bls per day in July. Immediate downside, the first support level is seen at $40.60 per barrel, while on the upside, the first resistance level is at $42.89 per barrel.
Oil prices crept into positive territory on Thursday but remained under pressure as a build in U.S. crude inventories and record Saudi Arabian production reinforced fears of a large global supply overhang.
Markets found some support from forecasts of a tighter market later this year as the International Energy Agency (IEA) predicted a gradual draw in stocks through the third quarter.
Offsetting that outlook, the IEA also lowered its forecast for global oil demand in 2017.
OPEC expects demand for its crude in 2017 to average 33.01 million bpd, suggesting a supply surplus of 100,000 bpd if OPEC keeps output steady.
But rising demand should help curb stocks later this year, the IEA said on Thursday.
“Oil’s drop…has put the ‘glut’ back into the headlines even though our balances show essentially no oversupply during the second half of the year,” the Paris-based IEA said in its monthly report.
Many analysts say they see oil prices trading within a range for the next few weeks.
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